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FxWirePro: USD/ZAR hovers around 14.60 mark, sustained close below requires for downside rally

  • USD/ZAR is currently trading around 14.61 levels.
  • It made intraday high at 14.60 and low at 14.70 levels.
     
  • Intraday bias remains bearish till the time pair holds key resistance at 14.90 mark.
     
  • A daily close above 14.64 will take the parity higher towards key resistances around 14.90, 15.02, 15.22, 15.40, 15.70, 15.92 and 16.10 marks respectively.
     
  • Alternatively, a daily close below 14.64 will drag the parity down towards key supports at 14.57, 14.22 and 14.05 levels respectively.
     
  • Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart. Current downside movement is short term trend correction only.
     
  • South Africa will release gold production as well as mining production data around 0930 GMT.

We prefer to take short position on USD/ZAR around 14.65, stop loss at 14.80 and target of 14.22//14.05.

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